TMI Blog2022 (4) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... rya Prakash Kesarwani And Hon'ble Jayant Banerji JJ. For the Petitioner : Shubham Agrawal For the Respondent : C.S.C.,Gaurav Mahajan ORDER 1. Heard Sri Subham Agrawal, learned counsel for the petitioner, Sri B.P. Singh Kachhawah, learned Standing counsel for the respondent nos. 1,2, and 3 and Sri Gaurav Mahajan, learned Standing counsel for the respondent no.4. 2. This writ petition has been filed praying for the following relief:- (i) Mandamus directing the respondent authorities to forthwith unlock the electronic credit ledger, which has been debited by Rs. (-) 1,23,59,000/- (Annexure No.2); (ii) Declaration holding that negative blocking of credit by respondent no.2 of ₹ 1,23,59,000/- was ille ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first condition for the exercise of power by the Commissioner or the authorized officer. Thus, for a valid exercise of power, the authorized officer must have 'reasons to believe' that any credit of 'input tax available' (i.e. that was available in the electronic credit ledger of an assessee) had either been fraudulently availed or the assessee was not eligible to avail the same. 14. The words 'input tax available' have to be read only in the context of the infringement being alleged by the revenue. i.e. fraudulent availment or availment dehors eligibility to the same. Consequently, if an assessee is found to have either fraudulently availed or to have availed such 'input tax credit' that he was inel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be accepted as that intent is clearly non-existing in the Rule. 21. The operative portion of sub-rule (1) of Rule 86-A limits the exercise of power (by the authorized officer), to the amount that would be sufficient to cover the input tax that, according to the revenue, had either been fraudulently availed or to which the assessee was not eligible. It is an amount equal to that amount which has to be kept unutilised. 22. To that effect, the legislature has chosen the words 'not allow debit'. To not allow debit and to appropriate the same are two different things in the context of the Statute. They lead to different consequences. While the first only creates a lien in favour of the revenue by blocking utilizat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recent judgment dated 07.04.2022 in Writ Tax No. 212 of 2022 ( M/s M.M. Traders Versus State of U.P. and 3 others and other connected writ petitions), this Court in para 4 and 5 has held as under:- 4. From perusal of Rule 86 A(2) of the C.G. S.T./U.P. G. S.T. Rules, 2017, and paragraph 3.4 of the aforequoted guidelines of the Commercial Tax we are of the view that the petitioners should first approach the authorized Officer raising objections against the blocking of the input tax credit and the said authority would be under an obligation to decide the objection within a time bound period. 5. In view of the aforesaid, we disposed off all these writ petitions giving liberty to the petitioners to submit objections b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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